As an established provider of comprehensive insurance solutions, TWG Insurance is committed to helping you understand the intricacies of auto insurance and the importance of being adequately covered. One often overlooked component is Uninsured/Underinsured Motorist (UM/UIM) coverage. With the rising number of uninsured drivers, it’s more crucial than ever to consider how excess UM/UIM coverage can protect you and your family.
The Growing Challenge of Uninsured Drivers
Despite legal obligations in 49 states, a concerning trend has emerged where an increasing number of drivers are choosing to forgo auto insurance. *Recent data highlights that in the first half of 2023, the percentage of households with at least one uninsured vehicle has escalated to 5.7%—a significant rise from the previous year. Moreover, twelve states have reported a surge of 30% or more in uninsured drivers, with South Dakota and New Hampshire experiencing staggering increases of over 80%.
Understanding UM/UIM Coverage
UM/UIM coverage is designed to protect you in the event that you are involved in an accident with a driver who either lacks sufficient insurance or has none at all. This coverage steps in to cover medical bills, lost wages, and other associated costs that the at-fault driver’s insurance should have covered. It is a critical component of your auto insurance policy that ensures your financial security in the wake of accidents with underinsured or uninsured drivers.
The Case for Excess UM/UIM Coverage
Given the alarming increase in uninsured drivers, standard UM/UIM coverage may not be sufficient. Excess UM/UIM coverage extends beyond the limits of your standard policy, providing an additional layer of financial protection. This is particularly important in severe accidents where medical expenses, property damage, and other liabilities can quickly exceed basic coverage limits.
Benefits of Excess UM/UIM Coverage
- Enhanced Financial Protection: Excess UM/UIM coverage shields you from significant financial strain following accidents involving poorly insured or uninsured drivers.
- Peace of Mind: Knowing you have comprehensive coverage can significantly ease your mind, allowing you to focus on recovery and other concerns following an accident.
- Flexibility in Coverage: Excess UM/UIM allows you to customize your insurance based on your personal needs and potential risk exposure, which is increasingly important in today’s unpredictable driving environment.
TWG Insurance: Your Partner in Protection
At TWG Insurance, we understand the value of peace of mind on the road. Our team is dedicated to providing tailored insurance solutions that align with your unique needs and circumstances. We encourage all our clients to consider the benefits of excess UM/UIM coverage, particularly in light of the growing risks on the roads today.
We invite you to reach out to our experienced agents to discuss how excess UM/UIM coverage can be integrated into your auto insurance policy, ensuring that you and your loved ones remain protected in every journey. For more information or to schedule a consultation, please visit our website or contact us directly.
*Source: “Independent Agent Magazine,” April 1, 2024. Article: “Why You Should Offer Excess UM/UIM Coverage to Personal Auto Clients.” Available online: https://www.iamagazine.com/markets/why-you-should-offer-excess-um-uim-coverage-to-personal-auto-clients
